If a company plans to continue business into the future, closing entries are not required.

The balance sheet is based on the accounting equation.

The entry to establish a petty cash fund includes:

All of the following are asset accounts except:

The chief executive officer earns $20,000 per month. As of May 31, her gross pay was $100,000. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of FICA-Social Security withheld from this employee for the month of June?

The accrual basis of accounting:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Austin Company reported Net sales of $1,200,000 and Accounts Receivable, net of $78,500. The Day’s sales uncollected (rounded to whole days) is:

Dennison Company reports depreciation expense of $35,000 for Year 2. Also, equipment costing $140,000 was sold for a $5,000 gain in Year 2. The following selected information is available for Dennison Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 610,000   $ 750,000   Accumulated Depreciation-Equipment   428,000     500,000  

Refer to the following selected financial information from Fernandez Incorporated. Compute the company’s profit margin for Year 2.    Year 2 Year 1 Net sales $ 478,500   $ 426,250   Cost of goods sold   276,300     250,120   Interest expense   9,700     10,700   Net income before tax   67,250     52,680   Net income after tax   46,050     39,900   Total assets   317,100     288,000   Total liabilities   181,400     167,300   Total equity   135,700     120,700